Buying Your Home
This Free Report Provided By Smart Cash Homes, LLC
Smart Cash Homes, LLC. 17772 IH 35 S. Lytle, TX 78052
Call or Text 210-215-2572
Buying Your Home
Buying your home can and should be a fun, exciting experience. It will probably also be the single largest investment you ever make. For this reason, it is important to be involved and informed. The series of steps below can help eliminate much of the guesswork and make you a much more informed buyer, so that your home purchase can be joyful.
1. Get Pre-approved for a maximum purchase price before locking in any homes. The last thing that you want to happen is to find your dream land and/or home, then make an offer that is accepted – only to find out that there is some error on your credit report that will take more time to correct than allowed by the contract sale You want to be looking at homes with the assurance that you are already pre-approved to buy at a certain price limit, so you can negotiate with confidence. Also, many Sellers won’t accept an offer from a Buyer that has not already been pre-approved, and you can easily lose a home or land that is in demand when you have to get pre-approved, and other buyers that are interested are already pre-approved and ready to buy.
2. Determine a realistic price range. Your mortgage lender or housing professional can determine in a matter of minutes how much of a loan you can pre-qualify for, depending upon your income and debts. With these numbers in hand, you can begin looking at homes that are in your budget.
3. View a variety of homes and land or neighborhoods. Don't be discouraged if you don't find the right home the first day. Also remember that love at first sight can apply to homes, too.
4. Select the home for you and make an offer to the seller or housing professional on an earnest money contract. When both parties have agreed to all terms in writing, you are on your way to home ownership!
5. Select your loan program and lock in your interest rate. You need to make sure you have selected a loan program that you understand, and one that has been tailored to fit your financial wants and needs. Also, the interest rates move everyday, sometimes several times per day – depending on the volatility of the market. Once you have selected a loan program that you are pre-approved for, you should consider locking in the rate to avoid upward movement. Examples; FHA, USDA, VA, Conventional, Home Only, Etc…
6. Arrange for a home inspection. Have a licensed inspector check the home for termitesfor defects if used. They should provide written reports upon inspection completion. If a new home, make sure the loan requires an inspection before final funding.
7. Arrange for Hazard Insurance (Homeowner’s Insurance). It is best to have this done at least 1 – 2 weeks prior to your closing to give the insurance company plenty of time to put a quote together.
8.Consider a home warranty plan. Home warranty companies will, upon failure of eligible systems and components of your home, provide for repair or replacement. These plans are effective for one year from the closing date, and some builders may go as long as 12 years. Make sure you clarify with the new home builder what is covered in their warranty.
9. Plan your move well ahead of time. Contact utility companies in advance, and if you are currently renting, give your landlord at least 30 days notice before vacating. Depending on your rental agreement, you may be required to give further advance notice.
10. Enjoy your new home. Homeownership is the American dream. By planning ahead, getting involved and staying informed, you can start building on that dream today.
Key Mistakes To Avoid
Many home buyers get caught up in the frenzy of emotions and excitement, and forget to do the things that will protect them before, during, and after the buying process.
Here Are A Few Mistakes To Avoid:
1-Not Establishing A True Budget Early In The Process Of Consideration A Home Purchase. Be Realistic, And Do Not Bite Off More Than You Can Handle.
2-Not Getting Preapproved For A Mortgage Before Starting Land/Home Search
3-Not Using Experienced And Trusted Home Professionals To Help You With Your Home, Land, & Mortgage. Don’t Be Enticed By Offers For Mortgage Programs That Appear To Have A Lower Rate Or Payment Without Making An Informed Comparison. 4- Buying Furniture Or Establishing New Credit After You Have Been Approved. (this could invalidate your approval because of budgeting new payments)
5-Making An Offer On A F.S.B.O. Without Full Knowledge Of All The Contingencies Needed.
6- Not Having A Home Inspection – Even If It Is A Newly Constructed Home
7-Not Having Your Homeowner’s InsuranceIn Place At Least A Week Prior To Closing. 8-Making Large Deposits Within 60 Days Of Closing. (it will trigger requests for documentation of the source of the funds which can hold up your closing)
9-Closing On Your Purchase Even When All Of The Repairs Or Punch List Items Have Not Been Satisfied. (once its done, its done. Therefore, make sure you have some kind of agreement signed in writing that these items must be completed with an allotted time after closing.)
Most home purchases can be very smooth, provided all parties handle their responsibilities in a timely manner, and everyone is acting with integrity.
Call us if you need help understanding any of these items 210-215-2572 JP.
Establishing A “Real” Budget.
One of the most common mistakes first time homebuyers make is jumping into the emotional frenzy of buying their first home without first analyzing the financial impact and feasibility of the new mortgage payment on their finances.
Not finding out how the mortgage payment will affect your finances can lead to some very hard lessons, and a lot of stress in the household – which is unneeded.
The best place to start is a household BUDGET
DefinitionBUDGET is not just a list of all your monthly expenses.
(That is just a list.) A budget is decision that is made by everyone that has access to household funds, agreeing to a set limit for spending each month.
One of the best ways to really understand what you pay out each month is to get your check register or a list of all the bills that you have paid over a year.
Include things that are not monthly, such as car insurance or any other insurance, birthday and other holiday presents that you always buy each year, and anything else you can think of that you paid last year.
Divide them up into categories, and take all of those expenses from the prior year and divide each category by 12.
This is your monthly cost
Once You Have An Accurate Budget In Place,
Analyze Where You Are Without The New Mortgage Payment.
Are you at a positive cash flow or negative?
If you are at a negative or less than $100.00 positive per month, you should probably think twice about purchasing a home at this time until you can get control of your monthly spending, or increase your income.
You may get approved for a loan without following this advice, but you may also find yourself in serious financial trouble afterwards, and we would like to help you avoid that if at all possible. Once you have a positive cash flow, take that amount and add it to your current rent payment. Unless something changes in regards to debts, spending, or income increase, this is the very maximum house payment that you will be able to afford. (I suggest keeping a $100.00 surplus each month at the very least if possible.)
Now Take That New Monthly Payment And Put It Into Your Budget.
Go to our online calculator and play with some sales price numbers, etc. Once you find out what loan amount gives you a monthly payment that is in your budget, you can start looking at home prices in your area to see if that will fit your needs.
Before looking at any homes or contacting any Realtors or sellers,
you need to get Pre-approved
Few Realtors or sellers will consider an offer without a Pre-approval letter, and you want to identify in advance any items that may hinder you from getting the loan program and terms you want.
When You Have Been Pre-approved For A Maximum Payment I would take the new monthly payment (including any taxes, insurance, or mortgage insurance) and subtract your current rent. Now set up some kind of “New House” account to put that money in each month so you can experience what impact that new payment will have on your budget. Do this for at least 2 months, and you should be prepared for serious house hunting. By establishing your budget now and preparing for the house payment in advance, you can avoid a great deal of hardship in the future.
Choosing A Neighborhood/Land
When you buy a home, you also buy part of a neighborhood or area. The two are inseparable and what neighborhood or area your new house is in is important to take into consideration before you make an offer. If the property value of houses in the neighborhood are falling or stagnate, a different area may be in order. Conversely, if home values in the area are skyrocketing, then it may be worth spending a little more. Below are some things to consider when looking at a neighborhood. Neighborhoods have personalities - find out what each one is. Ask some of the people in the neighborhood what they think of it. Ask how they perceive crime, the schools, pollution, noise and traffic. Human input is always better than reports. A good way to check out a neighborhood is to simply drive around it. Drive through the neighborhood at different times of the day – on weekdays as well as weekends. Find out what people do, and what there is to get a firsthand look at traffic and the stores you will have close to you. See what the area's schools look The condition of the schools and roads will tell you a lot about the area. Find out the crime report for the area. Start at the local police department and ask them for any statistics they can provide. Check for graffiti and vandalism. Schools Families with kids often pick a school district before they choose a house. Remember to also check out the schools that your kids will be attending 3-5 years from now, because most people stay in a home about 5-7 years. Location How long will it take you to get to work? A long commute may not save you money or time. Also, are there any parks around? How easy is it to get to the interstate? What do the other houses look like? Shopping close by? (If possible, try to leave early for work one morning and drive to the property – then drive to your job during rush hour. You will have a real idea of what your commute times will be.) Property Values It's a good idea to research recent selling prices for houses in the neighborhood and how much houses have increased in value in the past 10 years. Ask how much property taxes have increased, or contact the county tax assessor’s office for a history of increases. Utilities Find out utility costs. Normally the utility companies will give you a 12 month history a homes in the area. Also find out if cable and internet access are available to the area. Future Development Look for new construction in the neighborhood. Area growth can raise property values. However, it can also raise taxes and traffic congestion. Also look for any planned commercial construction. You really don’t want to move into your home and find out 3 months later that they are going to put in a landfill at the end of your street.
What Is “Mortgage Planning” and Why Is It Important?
Mortgage Planning is very similar to Financial Planning in that your current and future expenses, investment goals, and future plans are all analyzed to prepare a mortgage "strategy" that will best accomplish these goals for you and your family. This is a specialized service that is offered by very few companies, because it requires a longer commitment of time with the customer, specific training and understanding of finances, and a desire to help everyone you meet. Most mortgage companies are filled with "loan salespeople" that will sell you whatever product you ask for, regardless of the impact that program will have on your family's Most of them don't know what questions to ask, so often even well-meaning loan salespeople are just not educated or trained well enough to help you make the best decision. As a Housing Consultants, it is our goal to help you understand that your mortgage/home is the largest and most important investment you may ever make, and it will impact your financial life for years to come. It is a long-term commitment that - depending on how it is structured - can either restrict your financial opportunities, or give you the freedom and flexibility to achieve your dreams for your family. As your Housing Consultant, We will ask you questions that most loan or Home salespeople will not.
The answers to these questions can save you thousands of dollars in a very short amount of time, and keep you from making big mistakes in how you structure your financing
We look forward to serving you and your family as your Housing Consultant, and hope that our service will compel you to refer your friends, family, and co-workers to us to help them as well.
Sincerely,
Smart Cash Homes LLC
Owner - J.P.
Choosing Between A New And Remodeled Home
Who's right? established neighborhood. materials. Taxes are just another factor to add into the total cost of your home. Newer neighborhoods often times have lower taxes. However, when the government starts building schools, streets, sidewalks and parks and starts moving police and fire protection into the area, taxes will undoubtedly rise. Also check to see County taxes.
Neighborhood
Unfortunately, some of the best houses are located in some of the worst neighborhoods. When you buy a home, you are also buying into a community. You can't wall yourself away from the surrounding environment. neighborhood location you choose is one of the biggest aspects of buying a house. With their belongings neatly stashed in cardboard boxes, the Smiths entered the market for a new home. The scenarios played out before them. Unsure whether to choose a new home or existing home, they sought out the help of a Realtor and a home builder. Each tossed their own pitch onto the table - the advantages of a newly constructed home vs. a house that already exists. They both are. The Smiths don't exist, but the dilemma is real. New homes generally come with steeper price tags, but offer more amenities. Homes are becoming increasingly wired for technology, including multiple phone lines and more advanced electrical wiring. A home can be built to suit the wants of the buyer. Better lumber, more energy-efficient appliances, custom wiring, and improved insulation can be advantages for new homebuyers. New homes generally require less maintenance as well. Some question marks associated with a new home purchase can be cleared with an existing home. For a homebuyer putting costs over conveniences, purchasing an older home is an option. Existing homes often relieve the buyer of purchasing appliances, such as refrigerators and microwaves, which often are left behind by the previous owner. Landscaping and established yards are another plus for an existing home. In an established neighborhood, homebuyers can meet their would-be neighbors. The character of an existing neighborhood often differs from that of a new development area. Inquiring into schools, police presence and other aspects of living in a neighborhood also are possible in an You might go into a subdivision and be the 10th house out of 100 and you’re not sure what's going to happen. Existing homes often come with lower price tags because the buyer is paying past prices for labor and building More negotiation in price also accompanies an older home. Homebuyers should take personal preferences into account and examine the perks associated with both options. Low interest rates and appreciating home values should have little effect on whether a homebuyer chooses a new or existing home. Here at Smart Cash Homes we are proud to offer both New Construction and Previously Owned Homes along with our Free Lender Pre-Approvals and Land Locating Options.